Business owners & decision makers look to take advantage of market to save on lease rates
By Andy Mayr, Senior Vice President, NAI Michael
It’s that time again! You have 1, 3 or 6 months to decide whether you should do one or more of the following options:
- renew your lease where you are
- relocate the entire business operations to a more well-suited space/building
- renew and expand at your current lease
- consider purchasing instead of leasing
- down-sizing to a smaller space
- search the market for a better deal
- open an secondary business location
- sell your property and lease space instead
The options are numerous and sometimes overwhelming to a business owner/decision maker; especially, when he or she is busy supervising or running the daily functions of their business. Currently, tenants are taking advantage of the slow leasing market by finding either a property/Landlord that is willing to give them very attractive terms or by approaching their own Landlord and negotiating a “most likely” better deal than they currently have. In some situations, Landlord’s are willing to drop the lease rate of their current tenants to market rates or below-market rates, in order to make sure they retain their tenants. Every month that space sits vacant could be that $0.10/sq. ft. to $0.50/ sq. ft. rate reduction the Landlord should have agreed during their last negotiation, in order to sign-up the tenant. Some of these “rent concessions” are also based on the credit risk or financial strength of the tenant. If you are within 12 months of your lease expiration, its time to start working on that lease renewal or move.
Help is on the way. Let me analyze your lease situation. I can review your present lease document, make recommendations in regards to options you are considering, give you research on market lease terms, assist you in finding a new location (lease or buy), or help you negotiate a lease renewal and/or expansion at your present location.
If you are considering selling your property prior to the December 31, 2010 expiration of the 15% Capital Gains Tax, contact me to further discuss the value of your property.
Call for Info Andy Mayr, CCIM 301-918-2919